Good news!
We just added in H.264 support today, and moved away from FLV to MP4 in our choice of container format.
Video quality’s awesome, and some samples available for a short while at:
1) Fantastic Four: http://marcellus.tv/f_four.html
2) Sharks: http://marcellus.tv/shark.html
3) Batman Begins: http://marcellus.tv/batmanbegins.html
Enjoy the videos and stay tuned for more exciting announcements...